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HMRC Faces Backlash Over Four-Month Tax Refund Delays

MPs warn that outdated digital services combined with industrial action have driven up wait times, prompting HMRC to assign extra staff.

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Overview

  • Some PAYE and Construction Industry Scheme refund claims are taking up to four months to process, compared with a typical four to six week turnaround.
  • HMRC says self-assessment repayments remain unaffected and that newly allocated staff are working to reduce the backlog of delayed claims.
  • The Public Accounts Committee reported a 15% rise in the cost of tax collection to £563 million and criticised HMRC’s cumbersome phone and online systems.
  • York accountant Nikki Ainscough revealed clients were told refunds requested in March might not arrive until August, as HMRC works through claims lodged last December.
  • Industrial action by staff handling PAYE and CIS refunds has been cited as a factor worsening delays and straining small businesses’ and individuals’ cashflows.